Maker of Budweiser is partnering with medical cannabis company Tilray in a $100m deal to research cannabis-infused drinks for Canadian market

Maker of Budweiser is partnering with medical cannabis company Tilray in a $100m deal to research cannabis-infused drinks for Canadian market

Maker of Budweiser is partnering with medical cannabis company Tilray in a $100m deal to research cannabis-infused drinks for Canadian market

Anheuser-Busch InBev and Tilray Inc. said each company would invest $50m in a project to study non-alcoholic drinks containing cannabidiol, or CBD, and THC

CBD is claimed to have calming and healing effects and is non-psychoactive

Tetrahydrocannabinol (THC) is the psychoactive compound found in marijuana

AB InBev said it will participate through subsidiary Labatt Breweries of Canada

North American consumer spending on legal cannabis is expected to grow from $9.2 billion in 2017 to $47.3 billion in 2027

The maker of Budweiser is partnering with medical cannabis company Tilray in a $100 million deal to research cannabis-infused drinks for the Canadian market.

The alliance announced on Wednesday is the latest foray by a major beer company into the cannabis business in Canada, which legalized recreational marijuana in October.

Anheuser-Busch InBev and Tilray Inc. said each would invest $50 million in the project to study non-alcoholic drinks containing cannabidiol, or CBD, which some claim has calming and healing effects, and Tetrahydrocannabinol, or THC, the cannabis compound known for its psychoactive effects.

Tilray had announced a day earlier that a subsidiary struck a deal with pharmaceutical company Sandoz AG to jointly operate in jurisdictions where cannabis is, or will be, approved for medical purposes.

Tilray's shares jumped 15 per cent following news of the deal with AB InBev. Shares of AB InBev were little changed.

Belgium-based AB InBev, the owner of more than 500 beer brands including Budweiser and Stella Artois, said it will participate in the project through its subsidiary Labatt Breweries of Canada.